Sycamore officials are considering revising the city’s property tax levy.

Five plans will be investigated, one of which proposes lowering the city tax rate by 3.64 percent, the most popular plan among the council members.

Although the tax rate for the city would drop, Sycamore’s average homeowner would see, at most, a marginal increase in property tax levies.

A levy is the amount of money the city requires from its citizens, while the rate is the percentage taxed needed to reach that amount.

For example, in 1976, Sycamore needed $679,882 for general operations and used a property tax rate of 1.5355 percent to achieve that figure. In 2003, the city imposed a rate of 0.91223 percent to reach $2,198,131; a lower rate made possible by increased property values.

An independent audit found the city has a General Fund reserve of more than $4.1 million. Much of the reserve is earmarked for city pension costs.

First Ward Alderman Alan Bauer said that in the past, when the city had a reserve of roughly the same amount, the council decided it was inappropriate to hold this much of the taxpayers’ money and it should now look at this situation similarly. He suggested lowering the city’s property taxes.

Sycamore City Manager Bill Nicklas said this was something to consider, but money directed toward pensions and capital ventures, such as the proposed second firehouse, are more wisely paid quickly to avoid interest costs.

Paying interest on large projects causes taxpayers essentially to pay for the project twice, Nicklas said.

Also, one tornado or damaging windstorm could wipe out the reserve, Nicklas said.

The city’s property tax would increase but would be held at 3 percent below the city’s growth rate. Property taxes were discussed at length at Monday night’s meeting, with Nicklas commending the council’s “moves to lessen the city’s reliance on property taxes.”

He also said he thinks the council has made wise spending decisions, citing the administration of a restaurant bar tax and telecommunications tax as stabilizing factors for the city’s revenue.

The council also unanimously voted to allow the building of hospitality homes in the city for families of people in an extended care hospital.

Cindy Smith, CEO of Kindred Hospital, wants to build accommodations for families of the hospital’s patients. The homes will be built under the same terms by which a bed and breakfast is bound.

“They need a place like this,” 2nd Ward Alderman Pete Paulsen said, thanking hospital officials.